The investor, which holds 1.2 million shares, or 0.6% stake, urged the board to negotiate for a better price or recommend that the "insider offer" be rejected.

The board should have J.P. Morgan Securities and Centerview Partners do a fair value of the retailer's real estate, said Paradise Developments, which has been a shareholder since August 2019. (reut.rs/2oy2fAo)

Activist shareholder Jonathan Litt in June lambasted the bid as "woefully inadequate" and said the company was worth double the group's offer of C$9.45 per share.

A special panel of Hudson's Bay reviewing the offer proposed by Chairman Richard Baker and a group of shareholders has said it was inadequate based on an initial analysis.